ECOLOGIE - CONSTRUCTION - DECONSTRUCTION : revenue, balance sheet and financial ratios

In 2024, ECOLOGIE - CONSTRUCTION - DECONSTRUCTION achieves revenue of 1.5 M€. Revenue is growing positively over 9 years (CAGR: +1.5%). Significant drop of -12% vs 2023. After deducting consumption (39 k€), gross margin stands at 1.5 M€, i.e. a rate of 97%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 26 k€, representing 1.7% of revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -41 k€ (-2.7% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 191%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 18%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 41.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 143.20. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 48.9x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 401 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 101 days. The gap of 300 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 44 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 310 days of revenue, i.e. 1.3 M€ to permanently finance. Over 2016-2024, WCR increased by +39%, requiring additional financing.